Emerging markets: why politics matter in 2018

Looking back: politics impact emerging markets History suggests that political upheaval can impact emerging markets. In Mexico, financial crises in the 1970s, 1980s and 1990s all coincided with elections 1. For example, a month after President Ernesto Zedillo took office in December 1994, a peso devaluation drove the economy into crisis 2. Undoubtedly, a plethora of factors contributed to Mexico’s financial crisis, but two of the main drivers were tighter monetary policy in the US…